Thank you for standing by, ladies and gentlemen and welcome to the EuroDry Conference Call on the Second Quarter 2020 Financial Results. We have with us today, Mr. Pittas, Chairman and Chief Executive Officer and Mr. Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, EuroDry will be making forward-looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to slide two of the webcast presentation, which has the full forward-looking statements and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. And I would now like to pass the floor over to Mr. Pittas. Thank you sir, please go ahead.

Good morning ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the second quarter and six months period ended June 30th, 2020. Please turn to slide three. Our income statement highlights a solid year. For the second quarter of 2020, we reported total net revenues of $4 million and net loss of $3.8 million, adjusted EBITDA of minus $1.3 million and adjusted net income attributable to common shareholders of minus $3.9 million. Adjusted basic and diluted earnings per share attributable to common shareholders for the second quarter of 2020 were minus $1.73 per share. These were the worst results we have posted since spinning off our dry fleet from Euroseas in mid-2018. This was due to the terrible start to market coupled with the fact that two of our vessels had to complete a special service during this quarter. The improving market coupled with the fact that no more drydockings are due during the year should lead to a reversal of [Indiscernible] in Q3. Our CFO, Tasos Aslidis will go over our financial highlights in more detail later on in the presentation. Please turn to slide four for our chartering operations and sale and purchase highlights. Motor vessel Pantelis was fixed for a trip of about 55 to 65 days at around $7,000 per day during Q2. Thereafter, a few days ago, it was fixed with a trip for about 45 to 100 days at $10,850 per day or $11,500 per day, depending on the loading area. Similarly, motor vessel Tasos was fixed for a trip for about 80 to 100 days at $6,875 per day, which net of the ballasting…

Thank you very much Aristides. Good morning from me as well, ladies and gentlemen. I will take you over now through our financial results highlights for the three and six months period ended June 30th, 2020. For that, please turn now to page 15. For second quarter of 2020, we reported total net revenues of $4 million, representing a 35.6% decrease over total net revenues of $6.2 million which we achieved during the second quarter of 2019 and as Aristides mentioned, that was the result of the lower time charter rates our vessels earned affected by pandemic during the first half of the year. The company reported a net loss for the period of $3.8 million and net loss attributable to common shareholders of $4.2 million as compared to net loss and net loss attributable to common shareholders of $1.9 million and $2.6 million, respectively, for the same period of 2019. Interest and other financing costs for the second quarter of 2020 amounted to$0.6 million compared $0.9 million for the same period of last year. Interest expenses during the second quarter of 2020 were lower due to the lower average outstanding debt and the decrease LIBOR rate are loans get paid during the period as compared against -- again to the last year. Depreciation expenses for the second quarter of 2020 amounted to about $1.6 million and remained essentially unchanged compared to the same period of last year. The results for the second quarter of 2020 include a $0.2 million unrealized loss on three interest rate swap contracts and $0.1 million of unrealized loss on a forward freight agreement contract as compared to $0.2 million of unrealized loss on interest rate swaps and a $0.9 million of unrealized loss on freight contracts during the second quarter of 2019. Adjusted EBITDA…

Thank you, Tasos. I would like -- want to open the floor for any discussion that we may have -- any questions.

Thank you. [Operator Instructions] Thank you. Your first question comes from the line of Tate Sullivan from Maxim Group. Please ask your question.

Can you talk about today and you noted in your press release that your ability to extend the maturity for the debt due in 2020, has your conversation with your lenders changed in the last six months or can you just give some context to those conversations, please?

Yes, as we said, we did extend the maturities of the installments that were due in Q3 and Q4 with one bank that had finance three vessels and that was extended till the end of 2021 along with a balloon. So, this is one refinancing that we did. And the other important thing that we did was that we agreed with our preferred holders to be able to pay them in-kind rather in cash, the coupons that are due within this year and up till January 2021. So, these are the two developments that we can report today that has actually happened.

Okay. Thank you. And it sounds like your lenders start flexible with that and [Indiscernible] you already did that extend the maturities Thank you. In this current -- well, I'm going back to the operating environment 2Q and I know it's improved meaningfully since there is -- since then, is there any ability to cut any of your operating costs in this kind of environment if the volatility continues?

Well, first of all, I think that the costs might have slightly increased because of the pandemic and the operational issues that we have been facing in regards to calling at ports and changing crew and all sending spares and all that stuff. But it's very slight to have been able to keep that under control and expect to continue to do so, whilst definitely safeguarding our crew and -- but the market has indeed, improved quite substantially. And Q3, as I said, is expected to be a much better quarter than Q2. Charter rates have increased very significantly and we've been able to fix up seats either through FFAs or directly at the rates that are even profitable.

Okay. You mentioned -- following up on that, thank you. You mentioned rates closing in and about 13,000 a day. Can you -- did you get any comments -- I may have missed on the quarter-to-date average rig rates so far. Can you give any comment?

I want to say that the quarter-to-date, average rates are around $11,000 overall. So, it's significantly higher than the previous quarter which was, I think around $7,000.

Great. Thank you. And I think -- and you did mention some water ballasts equipment work from 2Q 2020, is some of that extending into 3Q 2020 or are there any expected drydock expenses in 3Q?

No, we don't expect any drydockings or any water ballast expenses into Q3 nor Q4.

Okay. All right. Well, great. Thank you. That's all the follow-up I had. Thank you.

Thanks Tate. Thank you.

Your next question comes from the line of Poe Fratt from Noble Capital Markets. Please ask your question.

Yes. Good morning.

Hi Poe.

I was hoping to get some -- hi, good morning. I was hoping to get some color on what assets under are not currently encumbered or what your potential borrowing power would be on any of the unsecured assets right now? And also looking in the context of your strategy of trying to either retire or restructure the preferred with the step up in the dividend right next year. I know it's not cash, but still it picks at a pretty high rate. And I was just wondering if we were looking at that or we're more focused on refinancing the debt that's coming up next year?

Yes, we are discussing about refinancing existing debt at this stage, but we have nothing to report yet, but we are confident that things will move along quite nicely. And we are equally confident that we will be able to find an agreement with our current -- equity holders, who have been supporting the company up to now to somehow minimize the effects of this increase in the coupons that we are to see in 2021. Nothing to report yet, but discussing all these possibilities, obviously.

Great and any comment on just your borrowing capacity right now on any assets that are unencumbered or unsecured?

All the assets are currently encumbered, but the amount of leverage on them is not huge. And we might be able to somehow increase that, if needed.

Selected vessels are almost -- at least one vessel, which one of our new versions is at 40% loans by now. So, that vessel Poe is a room to increase debt and refinance?

Yes, I think in previous calls, you might have highlighted that you have close to $10 million in under-levered assets or borrowing capacity is that -- that's so accurate or can you just comment on what your -- if you were to lever up to 55%, what availability you might have there as far as borrowing capacity?

I think we might be able to increase our borrowings by $5 million to $6 million, Poe, by increasing the leverage on existing vessels or restructuring the loan that is to expire in 2021. We don't need any of that looking forward for the first -- for the upcoming six months, because charter rates have improved and we've secured as I said previously to Tate, and have secured charters covering 70% of our open days for the remainder of the year. So, we don't need something imminently and we will not be needing it. But obviously, towards the end of the year, we will have further strengthened the balance sheet.

We have managed, as you can see on slide 17, to reduce our cash flow breakeven from almost $11,000 down to $9,600, which was the result of the actions that Aristides mentioned and the fact is we don't have drybulk coming in the next 12 months. So, cash flow-wise at the current rate, we are cash flow positive. We expect to be cash flow positive.

Yes, and understood and that 900 of that improvement is the picking up the preferred, right? The one thing Tasos if you could talk about, if you -- since you mentioned the breakeven costs in the second quarter 2020, you had $916 per day of interest expense, and you're looking -- forward-looking number on the next page incorporates or indicates that you're looking for $730 a day of interest expense. Is there a non-cash component that lowers that or are -- what are your assumptions on that looking forward interest rate calculation?

The historical number includes a period with a significantly higher LIBOR at the beginning of this year. I think we're -- the forward-looking LIBOR is very low and that is one of the reasons for the [Indiscernible] interest expenses. And of course, some debt has been repaid. So, there's a smaller balance, we think there is supply.

Okay. And it looks like you're -- you've done a good job on keeping costs fairly low and looks like they're going to be stable over the next 12 months according to that slide too, right.

Looks right, yes.

Great. And then earlier this week, there was some unusual trading activity in your stock pricing. Can you -- I'm not sure you can, but any color on what you think was happening that day.

Yes, absolutely no, no color on what was happening. I mean, this is what -- the same thing that I explained to whoever asked, NASDAQ included, but there was no event or there is nothing from the companies that could have created the type of outburst in activity.

Great. I thought so. I just had to ask. Thank you.

You're welcome. Thank you very much. Do we have another question?

There are no further questions at this time. Please continue.

Well, thank you very much for being with us for the results of Q2 and we'll be with you again in three months' time to discuss hopefully much better results that what we had this quarter. Thank you very much.

Thanks everybody.

That does conclude our conference for today. Thank you for participating. You may all disconnect.